Thursday, April 23, 2009

Quick updates on few charts

First the GBP USD (4 hour chart)

gbp usd support turns into resistance 22.04

Crystal clear. Break below channel support. Rally back to previous support line, which now acts as resistance, and prices fall back. Picture perfect. Suggests more downside coming. Notice the huge down candle and the consolidation after that – should break below tomorrow.

AUD JPY – 240 mins

aud jpy

Head & shoulders neckline break. Rally back to test neckline. Supply at former support level. Prices turn down from there. Break below rising trendline support would be final nail in the coffin of this pair which has rallied around 32% in past three months (that’s crazy for a currency pair !!!)


USD CAD – 240 mins

usd cad

Trendline guiding move up. Sees support from former resistance line of wedge. Note – this pair moves opposite to euro, pound, australian dollar etc, cause base currency switched.

CAD JPY – daily chart

cad jpy daily

CAD yen breaks below parallel channel support line.


NZD JPY daily

nzd jpy

well this one broke support long back.. its even reached the .382 fib.

Wednesday, April 22, 2009

GBP Test of previous support line

gbp usd 240 mins 21.04

Again , as with the AUD JPY chart – the most optimal place to take a trade. After a break of a major trendline, price goes back to test the trendline and faces resistance/support and continues with the new trend. High reward, low risk trades.

Tuesday, April 21, 2009

AUD JPY – Perfect place to take short trade

aud jpy 240 mins 21.04

Its bounced back sharply from support line and now testing resistance from neckline of head and shoulders pattern. Ideally, since we expect that the trend has turned for the overall market and are looking to take short positions, this area provides the most optimal point of entry – with resistance defined one knows where to place the stops. And if trade does move in the direction we anticipate (which it does in 80-90% times) the reward for taking a small amount of risk is huge. The potential risk:reward ratios in such trades often are 1:4-1:8

GBP JPY Daily chart

gbp jpy daily 21.04

The pair has found support at the channel support line. The region also coincides with an area of former resistance turned support. Should see a meaningful pullback here. This is one of the few pairs which hasn’t seen a break below support levels, but my guess is that it would do too pretty soon.